Wharf Street Redevelopment project moves forward

(Chris Kardish/Bluffton Today) A view of the Wharf Street Redevelopment project at the corner of Wharf and Robertson streets. The town expects to close on three of the six houses in October after receiving state and lender approval.

The town of Bluffton is scheduling meetings this week to finalize home selections for the three applicants drawn in a lottery for the Wharf Street Redevelopment, which officials estimate will bring in between $200,000 and $400,000.

Applicants in the town’s affordable housing initiative who passed income, residency and previous homebuyer restrictions gave a preferred layout from among the project’s six Old Town homes. The three included in the first lottery will make their official selection in the order they were drawn, said Danny Wilson, the town planner who managed the project.

Two of the applicants are expected to choose from the three-bedroom layouts appraised at $190,000 while the third will choose from one of the two available two-bedroom options, Wilson said.

The town anticipates closing on the first three homes in October, with the final three coming by the end of the year, said Marc Orlando, director of growth management for Bluffton. The next lottery has not yet been scheduled. Closings were originally anticipated to begin in July, according to the town’s timeline.

Another nine applicants remain in the pool for the three remaining homes after about 50 withdrew from the program since the spring. Most have provided little explanation for the drop, though the strict criteria established for the largely grant-funded project could be a factor for many, officials have said.

A single person can’t earn more than $39,100, and a family of four can’t have a household income above $55,850. Rules also come with restrictions on previous home ownership and give higher standing to applicants who live and work in Bluffton.

After the town finalizes selection paperwork with applicants they’ll turn over the process to lenders familiar with the project for final appraisal, which Orlando acknowledged could take up to 30 days but is anticipated to take about 10.

Final appraisals that effectively establish a price ceiling drew some concern from Affordable Housing Committee member Thomas Viljac at its Tuesday meeting.

“That is a wild shot in the dark with conventional lenders and appraisers in this area,” he said. “That could actually be a deciding factor in what (applicants) qualify for.”

Orlando stressed that the lenders are familiar with the project and down payment assistance is available if necessary.

Minus the town’s contribution of up to $25,000 for incidentals, the home sales will net Bluffton between $200,000 and $400,000, Wilson said.

Town Manager Anthony Barrett called that a boon for future improvements.

“When these houses are sold, that mortgage money comes back to the town as a pool of money for the mayor and council to use however it wishes to use as far as projects for affordable housing or other neighborhoods,” he said.

Funded in large part by $900,000 in federal grants, the Wharf Street Redevelopment replaced two blighted structures with six new homes as part of a strategy to improve the surrounding neighborhood, invest in Old Town and create affordable housing within the reach of jobs, parks and other resources, Barrett said.

“That was the real purpose for the grant, which was to approve the neighborhood, and this board and Council did it,” he said, adding, “this was not just a giveaway program” in response to criticism about the process.